Freak-a-nomics and the United States of McDonalds
By: Patrick Henningsen
Jun 05, 2011
This is one of those Freak-a-nomic statistics that, if you were in government, you wouldn’t ever want it to be released to the public, especially during a protracted recession like we are currently witnessing in the US. No would want to admit that the Golden Arches are holding up the American economy.
In a recent report from Market Watch we have learned that:
“McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate. There’s a case to be made for the benefit of fast-food restaurant employment, but it’s obviously not the foundation for sustained economic growth.”